23 Butts Court, Leeds - Cushman & Wakefield
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City Centre Investment & Development Opportunity 23 Butts Court, Leeds LS1 6AG BENEFITS FROM PDR - RESIDENTIAL
23 Butts Court, Leeds
Investment Considerations An outstanding
opportunity to
❑ Freehold ❑ The property benefits from two Permitted purchase a City
Development approvals (21 & 23 apartments). Centre building with
❑ Attractive and modern office building located Permitted
within the heart of Leeds City Centre ❑ Opportunity suitable for developers, investors and
Development for
owner occupiers.
❑ Self-contained access from Butts Court with an
Residential
additional entrance from Albion Street ❑ Offers are sought in excess of £1,850,000 (One Conversion.
Million Eight Hundred and Fifty Thousand Pounds),
❑ Extending to 12,657 sq ft (GIA) subject to contract and exclusive of VAT.
❑ Let to Leeds Building Society, subject to a tenant ❑ A purchase at this level reflects a Net Initial Yield of
only break on 24 March 2022 (tenant has served 9.05%, assuming standard purchaser’s costs of
notice to operate this break) 6.23%
Edinburgh
❑ Current passing rent of £177,951 per annum ❑ Low capital value of £146 per sq ft.
Glasgow
Manchester
Liverpool
LEEDS
Birmingham
London
Swansea
Plymouth
2
23 Butts Court, Leeds
Location
Leeds is the third largest city in the UK with a population of 779,000 and benefits from a large, young and diverse workforce, with
an estimated working population of 516,000
The wider Leeds City Region has a population of 3 It is also a leader in digital technologies, Road
million and offers a highly skilled workforce of 1.4 manufacturing and healthcare & innovation. Leeds City Region benefits from excellent access
million people, with 7 million people within an to several of the UK’s highest capacity and most
hour’s drive. In 2020 the Leeds tech sector attracted over £31m strategic roads, including the M1, A1(M) and M62.
in venture capital investment, which is more than
Leeds is the UK’s fastest growing city, with an the previous year despite the impacts of the Covid- 23 Butts Court lies within a 10-minute drive of the
economy estimated to be worth £21.3 billion, 19 pandemic; Leeds was ranked the top of the UK motorway network, located just 1 mile north of
growing by 34% in the last decade and predicted Tech Town Index in 2020. Junction 3 of the M62 providing direct access to
to grow by a further 21% in the next 10 years. the M62, and 3.5 miles from Junction 45 of the M1
Leeds is the driving force behind the wider city The city has a very high student retention rate motorway.
region’s economy, which is worth over £69.6 providing an excellent pool of skilled labour. Leeds
billion and is the largest contributor to UK GDP in was recently ranked the best place to live in the Air
the Northern Powerhouse. north of England in the PwC-Demos Good Growth Leeds Bradford Airport is the largest airport in
for Cities Index. Yorkshire, located 7 miles north west of Leeds City
Leeds is recognised as the largest hub for Centre, it provides international and domestic
financial and legal services outside of London, flights to over 50 destinations.
employing 46,000 people across the professional
services sector. Rail
Leeds railway station is the third busiest station in
the UK outside of London, and the busiest in the
north of England, welcoming over 31 million
passengers every year.
HS2
The planned eastern leg of HS2, the planned high-
speed rail link is expected to arrive in Leeds. This
will unlock much needed capacity and bring
reduced journey times to London and Birmingham
of 82 and 57 minutes respectively.
Cushman & Wakefield 3
Situation
23 Butts Court is situated within the core of Leeds City
Town Hall
The Light Centre. Butts Court provides a quiet no-through road with
very little vehicular traffic. Albion Street lies to the east side of
the property; it is a busy thoroughfare from Boar Lane and
Subject Property the station to the south of the centre up towards the
Headrow which runs across the north of the centre.
Albion Street also provides access to key shopping areas
such as Albion Place, Commercial Street and Trinity Leeds,
which all lead to the prime pitch of Briggate.
The Core
Park Row lies parallel to Butts Court, a short distance to the
west. Park Row and the surrounding area is home to some of
the key leisure occupiers in Leeds, such as Gaucho, Arc
Inspirations, Neighbourhood, Sukothai, San Carlo and Flight
Club.
City Square
The Core 2 mins 1 min -
Trinity Shopping Centre 3 mins 1 min -
Trinity Corn Exchange 7 mins 3 mins -
University of Leeds 12 mins 5 mins 6 mins
Leeds Beckett University 8 mins 3mins 4 mins
Leeds Art University 19 mins 9 mins 6 mins
Leeds Train Station 6 mins 2 mins -
First Direct Arena 9 mins 4 mins 4 mins
Merrion Shopping Centre 5 mins 2 mins 4 mins
Leeds Railway Station Corn
Exchange
23 Butts Court, Leeds
Property Description PDR Consent – Residential (21 & 23 apartments)
The property benefits from two PD application approvals:
The property comprises a modern office building, formed by two adjoining period ❑ (Ref: 20/08420/DPD) under permitted development rights for change of use
buildings, creating open plan accommodation over first, second and third floors, with from Offices (B1(a)) to 21 Apartments (C3); a mixture of studio and one bed
reception at ground floor and plant room to forth floor (both of which are subject to the apartments, plus two resident’s lounges on the 2nd floor.
PDR application).
❑ (Ref: 20/00793/DPD) under permitted development rights for change of use
There is also separate retail accommodation sold off on a long leasehold on the ground from Offices (B1(a)) to 23 Apartments (C3); a mixture of studio and one bed
floor, which fronts onto Albion Street. apartments, plus one resident’s lounge on the 2nd floor.
The main entrance for the office accommodation is accessed via Butts Court. Four Further details of the planning consent can be found on the Leeds City Council
secure tandem parking spaces are also accessed from Butts Court via two separate roller Planning Portal.
shutter doors.
Existing 2nd Floor
Tenancy
The property is currently let to Leeds Building Society on Full Repairing and Insuring terms,
with a lease expiring on 30 March 2024, with a tenant only break on 24 March 2022. The
current passing rent is £177,951 per annum.
The tenant has served notice to exercise their break option and the tenant intends to
vacate the property in March next year.
Accommodation
We have been provided with the following areas of the building. Note that the GIA
excludes staircases.
GIA NIA Consented 2nd Floor (typical layout) - Ref: 20/08420/DPD
Area Sq m Sq ft Sq m Sq ft
Ground Floor 67.8 730 Reception
First Floor 360.2 3,877 32.62 3,515
Second Floor 370.8 3,991 339.3 3,652
Third Floor 324.2 3,490 293 3,154
Fourth Floor 52.9 569 - -
Total 1,175.90 12,657 958.92 10,321
Cushman & Wakefield 5
23 Butts Court, Leeds
This is Leeds
Leeds enjoys an unparalleled growth story with new infrastructure. Office space
take-up and significant student expansion have both led to enhanced
household creation and demand.
OFFICE MARKET
Occupational
The 10-year average take up for Leeds is 595,000 sq ft. 2020 was a restricted year for Leeds’ PRS market continues to grow, with £3.7bn of residential development
transactions, with total take-up limited to just 343,659 sq ft. 2021 is well-poised to be a currently under construction and in the pipeline.
successful year as many businesses look to seek better quality accommodation. There
was an encouraging level of requirements launched in Q1 which equate to a total of The PRS sector in Leeds is still an emerging market in comparison to other
250,000 sq ft. regional centres such as Manchester and Birmingham, although it is
underpinned by a large student population, a strong working population of
The professional sector remains a key driving force for active demand in Leeds. Further professionals and a growing economy.
significant demand stems from the media and finance sectors and the emerging digital
technology sector, with Leeds being selected as one of a few “UK Gigabit Cities”. STUDENT
Leeds student population exceeds 60,000 with an increasing graduation
Prime headline rents in Leeds City Centre have increased by 13% over the last 2 years. It is retention rate.
expected that the lack of available Grade A space will support the city’s prime headline
rent throughout 2021 and beyond. Leeds has the largest cluster of higher education institutions outside of London,
producing approximately 39,000 skilled graduates annually, including 15,000
Investment STEM graduates.
Office investment volumes in Leeds City Centre reached over £100m in 2020 despite it
being one of the most challenging years on record. Leeds offers very favourable supply
and demand dynamics and offers relative value in comparison to the other ‘UK Big 6’
cities and London. 3 THE
MILLION FASTEST
There is significant weight of money from pent up demand, both from domestic capital people live within Leeds rate of growth in private
and overseas investors who are being frustrated by a lack of good quality stock. This is City Region sector jobs in any UK City
likely to result in increased competition for assets that do come to market throughout
2021. BUSINESS
LARGEST
New HQ for Channel 4,
PRS / RESIDENTIAL
finance and business
Following Burberry,
service sector outside of
£4.16bn of PRS assets transacted in 2020 across the UK, a 40% year-on-year increase from Perform Group and
2019. This is predicted to increase by a further 20% in 2021. Despite the challenges of the
London
HMRC
pandemic, the regional residential market continues to prove a sensible allocation of
capital, particularly in the north where greater returns can typically be achieved.
Cushman & Wakefield 6
23 Butts Court. Leeds
Tenure
The property is held Freehold
EPC
C-73. A copy is available upon request.
VAT
The property is VAT elected and VAT will therefore be payable upon the
purchase price. It is anticipated that the sale can be treated as the Transfer of a
Going Concern (TOGC).
Data Room
Please contact Cushman & Wakefield directly for data room access.
Proposal
Offers are sought in excess of £1,850,000 (One Million Eight Hundred and Fifty
Lofthouse Residence is operated by YPP who specialise in
Thousand Pounds), subject to contract and exclusive of VAT.
providing excellent accommodation to students and young
professionals in the Leeds area.
A purchase at this level reflects a Net Initial Yield of 9.05%, assuming standard
purchaser’s costs of 6.23% and a low capital value of £146 per sq ft.
Indicative Purposes Only
Cushman & Wakefield 7
Giovanni Pilla Connor Rogers Richard Brooke No 1 Marsden Street
Senior Surveyor Surveyor Partner
Manchester
+44 161 235 7672 +44 113 233 7474 +44 113 233 8879
M2 1HW
+44 7976 154 459 +44 7557 895735 +44 7809 321451
cushmanwakefield.com
Giovanni.pilla@cushwake.com Connor.rogers@cushwake.com Richard.brooke@cushwake.com
MISREPRESENTATION ACT:
Cushman & Wakefield Debenham Tie Leung Limited ("C&W") gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property only and do not constitute any part of an offer or contract. 2. Any information contained in these
particulars (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact or that the property is in good condition or otherwise nor that any services or facilities are in good working order. 3. The photographs appearing in these particulars show only certain parts and aspects of the property at the time
when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. Any areas, measurements or distances referred to
herein are approximate only. 4. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 5. No
person in the employment of C&W has any authority to make or give any representation or warranty whatsoever in relation to this property. 6. This property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 7. Unless otherwise stated, no investigations have been made by or on behalf of C&W regarding pollution, or potential land, air
or water contamination. Interested parties are advised to carry out their own investigations as required. In order to discharge its legal obligations, including under applicable anti-money laundering regulations, C&W will require certain information of the successful bidder. In submitting a bid, you agree to provide such information when Heads of Terms are agreed. Date of
publication July 2021.You can also read
